Today, at 10:30, we will closely watch the Swiss central bank's decision on interest rates. All 26 surveyed analysts from Bloomberg expect the current -0.75% to be retained.
The decline of CHF by almost 7% against EUR from the beginning of the year will hardly be enough for the central bank to change the tone of the country's monetary policy and will probably continue its speeches that the country's currency is still overevalued. However, this bank meeting will be the most interesting since 2015.
If everything goes as expected and the SNB leaves interest rates unchanged, the EUR / CHF pair will likely break the previous tops and attack levels around 1.20.
Alternatively, if the central bank changes the tone of monetary policy in its statement after the decision, we can expect a short-term increase in CHF.
The graph shows the sentiment over the Swiss currency, but it also gives a red light for possible surprises today. The decline in CHF is profitable for exporters and is in line with SNB's recent sentiment for a weak Swiss franc. However, such a slice of the chart was last in 2015 when everyone was surprised by the sharp increase in CHF.
Trader Nikolay Georgiev
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